What Is Involved in a Corporate Restructuring?

By Suzzanne Uhland

Corporate Restructuring

● Involving multiple levels of planning and strategy, a corporate restructuring effort is best overseen by an attorney with extensive experience in that area.

● Whenever a business experiences significant financial hardships and cannot continue making timely payments on outstanding accounts, its leadership may decide to consolidate its debt and seek an adjustment of terms.

● Typically, when a company goes into Chapter 7 bankruptcy, it dissolves as a corporation and liquidates its assets for the benefit of its creditors.

● On the other hand, if a company’s business would be on solid footing were it not suffering under its set of current liabilities, it may seek protection under Chapter 11 bankruptcy law, in which case the court will consider a request for a restructuring that can ultimately provide an acceptable outcome to all stakeholders.

Bankruptcy

Involvement● Restructuring can result in major

modifications to the debt itself, as well as to the operating procedures of the business.

● Attorneys representing such a company will work to create a restructuring that minimizes or removes the financial peril involved and allows the company to place itself back on the road to solvency.